Question

A person bought a company that had been operating at a loss. After retaining employees, investing in new machinery, and changing the product to be more stylish, the firm is now making a huge profit. What is the economic term for people who do this?

a) Risk-taker
b) Entrepreneur
c) Speculator
d) Innovator

Answer 1

The economic term for people who do this is entrepreneur.

Step-by-step explanation:

The economic term for people who buy a company operating at a loss, retain employees, invest in new machinery, and make changes to the product to generate significant profit is entrepreneur.

An entrepreneur is a risk-taker who identifies opportunities, develops new ideas, and takes calculated risks to create or improve products, services, or processes.

Examples of successful entrepreneurs include Jeff Bezos, the founder of Amazon, and Fred Smith, the founder of FedEx.